Dow plummets 726 points for worst day of 2021 as virus variants threaten global recovery

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US stocks cratered on Monday as investors eyed a spike in global COVID-19 cases led by the Delta variant, throwing up a roadblock to a full recovery of the economy.

The Dow Jones industrial average fell 726 points, or about 2.1%, for its worst day since October 2020, while the benchmark S&P 500 and tech-heavy Nasdaq Composite also tumbled.

The yield on the 10-year Treasury note declined as much as 12.2 basis points to 1.177%, its lowest level since February as investors flocked to safe-haven assets.

Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:

Read more: ‘More weakening beneath the surface’: A Wall Street strategist who warned investors before last year’s 35% crash lays out the latest signs that another slump into a bear market is looming

“COVID has returned to the front burner of investor concerns right now,” David Donabedian, CIO of CIBC Private Wealth, said in a note. “Last week we had high inflation readings. Now we have concerns that the rise in COVID cases is dimming the economic outlook. While the second-quarter earnings reports have so far beat expectations, this is old news now.”

Shares of airlines, cruise operators, and other travel companies slumped on concerns that the Delta variant would derail the recovery.

American Airlines and airplane maker Boeing all slipped roughly 5% each. Expedia Group and hotel chain Marriott both declined by roughly 3% each. Meanwhile, Carnival, Norwegian Cruise Line Holdings, and Royal Caribbean Cruises all fell as well.

Energy stocks tumbled, including Texas-based oil equipment maker NOV and Diamondback Energy.

Some argue the plunge on Monday is nothing to fear. The sell-off in stocks is a “healthy pullback” that will likely be short-lived and could present a buying opportunity, said technical analyst Katie Stockton of Fairlead Strategies.

In cryptocurrencies, bitcoin continued its recent slide, falling as much as 3.4% to $30,646.90. All other major cryptocurrencies – ether, cardano, ripple, dogecoin, polkadot, and solana – traded lower on Monday.

Despite the downturn, mining bitcoin has been a lot easier. The asset’s “network difficulty,” which measures how much computing power is needed to mint a new bitcoin, has plummeted.

Oil fell on news over the weekend that OPEC+ reached a deal on supply, overcoming the deadlock between Saudi Arabia and the UAE.

West Texas Intermediate crude fell as much as 8.06%, to $66.02 per barrel. Brent crude, oil’s international benchmark, dropped 7.39%, to $68.15 per barrel, at intraday lows.

Gold fell as much as 0.45%, to $1,807.56 per ounce.

Lumber gained modestly, rising 4.83% to $561.90 as supply catches up with demand. Prices are set to stay elevated despite recent declines, according to an economist,

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The S&P 500 could drop sharply in the 3rd quarter as the ‘5 P’s’ pressure markets, Bank of America says

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  • The first half of the year has brought good news for many assets, but the rally could use a “breather,” BofA analyst write.
  • The five P’s – pandemic, price, positioning, policy, and profits – are set to weigh on markets in the third quarter.
  • Stocks may also fall preemptively, as investor jitters make lower Q4 profits show up in Q3 share prices.
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Bank of America is anticipating a preemptive slowdown in the third quarter as investors fearing the “five P’s” pull back across asset classes, analysts wrote in a note.

The first half of the year has brought good news for many assets, but the “Wall St boom/bubble” could use a “breather,” BofA’s analysts wrote.

In their view, the five P’s – pandemic, price, positioning, policy, and profits – look set to weigh on credit, stock, and commodity returns in Q3, partially in expectation of weaker company earnings relative to growth in the fourth quarter.

Pandemic

With Covid cases around the world ticking up due in part to the Delta variant, BofA expects growth and earnings expectations for this year and next to fall. That could lead to downward pressure on asset prices.

Price

The latest Covid wave comes as asset pricing is already robust, with the S&P 500 price-to-earnings ratio at dot-com bubble levels. Commodities and housing are also at or nearing historic valuations. US spreads between risk-free and junk bonds are exceptionally tight, as junk bond yields fell below inflation on Friday. (Prices rise when yields fall.)

Positioning

The analysts pointed to survey data showing fund managers pouring money into “late cycle” assets – those best suited for inflation and weak growth. In Q3, they see the S&P 500 falling below 4,000, a drop of roughly 8% from current levels, led by flagging tech stocks, which many investors (wrongly, in their view) see as a good defensive option.

Policy

Inflation across the developed world will force monetary and fiscal authorities to ease up on stimulus measures in the coming quarter. Moreover, prospects for Joe Biden’s proposed $1.7 trillion infrastructure package have dimmed as the administration now pursues a slimmed down bipartisan deal.

China is still a “wild card” in terms of policy, the BofA analysts wrote, but the central bank seems wary of overheating the country’s fragile financial sector.

Profits

Between potential future Covid restrictions, supply shortages, and likely growth deceleration, corporate profits are poised to feel the pinch in the second half of the year. Stocks may also fall preemptively, as investor jitters make lower Q4 profits show up in Q3 share prices.

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Treasury Secretary Janet Yellen warns of ‘absolutely catastrophic’ hit to economic recovery this summer if US can’t pay its bills on time

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  • On Wednesday Secretary Yellen asked Congress to extend a July deadline to pay back some of the federal debt.
  • Without an extension, she warned of a “catastrophic” default that could hurt economic recovery.
  • Some in the GOP have signaled they want spending cuts in exchange for increasing the debt ceiling.
  • See more stories on Insider’s business page.

Treasury Secretary Janet Yellen urged Congress on Wednesday to extend a July 31 deadline to pay down a portion of the federal government’s $28 trillion in debt to investors and foreign governments.

Without the extension, she warned of an “absolutely catastrophic” default that would imperil the nation’s economic recovery from the pandemic.

“I think defaulting on the national debt should be regarded as unthinkable,” she told the Senate Appropriations Committee, calling it “utterly unprecedented in American history for the US government to default on its legal obligations.”

Though borrowing is a routine cycle the federal government uses to keep the country running through the sale of bonds, it’s reaching its “debt ceiling” on July 31 and needs to service its debt before it can borrow more. The Treasury has some ability to keep payments flowing beyond that date, but Yellen said it could exhaust those measures sometime in August during the month-long Congressional recess. Increasing the debt ceiling does not mean additional federal spending.

If the federal government defaults, Yellen said it could jumpstart a chain reaction of cash shortages starting with US bond holders, which include individuals, businesses, and foreign governments.

“I believe it would precipitate a financial crisis,” Yellen said. “It would threaten the jobs and savings of Americans and at a time we’re recovering from the COVID pandemic.”

Congress last suspended the borrowing limit in July 2019 for two years under President Donald Trump. Yellen also emphasized the pandemic is causing uncertainty around the Treasury’s emergency powers to step in with emergency payments if it became necessary.

Some Republicans have signaled they will press for spending cuts in exchange for signing onto a debt ceiling increase, despite supporting a surge of red ink under Trump. Among many Democrats, memories of a 2011 brawl between House Republicans and President Barack Obama on the debt ceiling are still fresh, as it sent stocks tumbling and caused the first downgrade to US credit.

“This is a page from the Obama-era economic sabotage playbook, and I’m not going to let Republicans play games with the economy for their political benefit,” Sen. Ron Wyden of Oregon, chair of the Senate Finance Committee, told Insider in April.

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S&P 500 hovers near record highs on continued economic optimism and Fed support

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US stock market investors are feeling optimistic about the economy.

  • US stocks rose with the S&P 500 hovering near record highs Friday as investors remain optimistic about the US economy.
  • The benchmark index on Thursday broke both its intraday and closing records.
  • The 10-year Treasury yield was around 1.455% Friday, in a sign that the market believes strong inflation will prove transitory
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US stocks rose on Friday, with the S&P 500 hovering near record highs as investors continue to remain optimistic about the US economy amid support from the Federal Reserve.

The benchmark index on Thursday broke both its intraday record and closing record, to finish the session at 4,239.18.

Tom Lee, managing partner and the head of research at Fundstrat Global Advisors, said the breakout to new highs was presaged by the upside breakout last week.

“Our base case of a surge in S&P 500 to 4,400 before mid-year 2021 remains intact,” Lee said in a note.

While Thursday’s data showed that US inflation surged more than expected in May, weekly jobless claims fell to a pandemic-era low.

The 10-year Treasury yield was trading around 1.455%, two basis points above its March low, in a sign that the market believes strong inflation will prove transitory, as the Federal Reserve has stated.

Here’s where US indexes stood at 9:30 a.m. open on Friday:

Bitcoin was trading at $37,421. The world’s most popular cryptocurrency climbed to a one-week high Thursday, hitting $38,000 as the cryptocurrency shrugged off renewed calls for tighter regulation.

Gold slipped by 0.57% to 1,887.18 per ounce. The precious metal lost some ground as the US dollar rose.

Oil prices fell. West Texas Intermediate crude edged lower by 0.07% to $70.24 per barrel. Brent crude, oil’s international benchmark, was down 0.07%, at $72.47 per barrel.

The International Energy Agency said on Friday that global oil demand is set to return to pre-pandemic levels by the end of 2022, but renewed COVID outbreaks and low vaccination levels in developing countries will make the recovery uneven.

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Billionaire investor Ray Dalio says he’d rather own bitcoin than bonds as inflation surges – and reveals he’s bought some of the cryptocurrency

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  • Ray Dalio said he’d rather own bitcoin than bonds in a CoinDesk interviewed aired Monday.
  • The Bridgewater founder also said he owns “some bitcoin,” the first time he’s ever disclosed a position in the cryptocurrency.
  • Dalio has been bearish on bonds for a while, saying they pay less than inflation.
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Billionaire investor Ray Dalio said he would rather own bitcoin than bonds in an interview aired on Monday at the Consensus by CoinDesk 2021 convention.

The Bridgewater Associates founder reiterated his view that the US dollar is on the verge of a devaluation, and he suggested that bitcoin could be an attractive savings vehicle in an inflationary scenario.

“The more we create savings in it, the more you might say, ‘I’d rather have bitcoin than the bond,'” Dalio said. “Personally, I’d rather have bitcoin than a bond.”

The billionaire investor has been bearish on bonds for quite some time, saying that the financial instruments pay less than inflation.

“I have some bitcoin,” Dalio also said during the interview, which was recorded on May 6. The investor didn’t say how much he owned.

Bitcoin rebounded as much as 15% on Monday to trade around $38,683 per coin after a vicious sell-off over the weekend.

He added that bitcoin’s greatest risk is its success. If it becomes a larger asset class and starts to pose a real threat to others like bonds, that could prompt a regulatory crackdown that could hinder the cryptocurrency. He said right now, bitcoin isn’t a true threat because it’s still small relative to other assets. The total value of bitcoin is slightly over $1 trillion, while the value of US bonds is about $23 trillion, according to Dalio.

In March, Dalio said that the government could ban bitcoin altogether if it becomes too successful.

The investor was skeptical about the cryptocurrency as recently as November, but he began to warm-up to the idea of bitcoin at the start of 2021. In an investor letter, he said that bitcoin is “one hell of an invention,” and said there exists a possibility that bitcoin and other cryptos could become an alternative gold-like store of value.

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100X trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

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Why gold is a better investment than bitcoin despite the cryptocurrency’s recent dominance, according to SocGen

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  • Bitcoin’s place in investment portfolios is still “highly contested” even after outperforming gold in recent months, says Societe Generale.
  • The cryptocurrency faces multiple risks including regulatory threats and “confusing” messaging from bitcoin backer Tesla.
  • SocGen has assigned gold a 5% weighting in its multi-asset portfolio.
  • See more stories on Insider’s business page.

Societe Generale has concerns about bitcoin’s presence in investment portfolios after a week that saw the ever-volatile cryptocurrency plummet more than 30% in a single day. That has the firm weighing gold as a superior option – despite its recent underperformance – given its better protective qualities against inflation.

Gold’s place in investment portfolios is better understood than bitcoin’s, the bank said, adding that it has assigned gold a 5% direct weight in its multi-asset portfolio. SocGen said the metal can partially offset capital losses on bonds in the event of rising inflation, and, in cases of runaway inflation or a return to deflation, the metal has a protective role in partially offsetting losses on equities.

SocGen said gold should be held in portfolios as a stabilizer, especially as the prospect of Federal Reserve tapering lurking as a headwind for stocks, for which the firm currently has a 59% weighting. It’s an outcome that the central bank has at least discussed, according to minutes from their April meeting.

“It comes as no surprise that the place of Bitcoin in any investment portfolio remains highly contested, precisely because of its erratic price movements,” wrote Alain Bokobza, head of Societe Generale’s global asset allocation, and analyst Arthur Van Slooten in a note published Thursday.

Bitcoin’s climb from around $10,000 in September has helped keep alive debate among investors about whether it’s is a stronger hedge against inflation than gold, which is considered a traditional vehicle for inflation protection. The Fed at the end of August said it would tolerate inflation running moderately above its 2% target for a period of time in an effort to support growth in the economy and the labor market.

The cryptocurrency’s standing took a hit this past week after the People’s Bank of China said digital tokens can’t be used as a payment form by financial institutions. Bitcoin had already been hit hard this month after Tesla CEO Elon Musk said the electric vehicle maker would stop taking bitcoin as payment, citing the “insane” amount of energy required to create new coins and secure the network as reasons for the move.

“The risks to bitcoin remain on the downside,” the analysts said, counting among the risks “confusing Tesla communications, past stratospheric price movements, potential new regulations from central banks on cryptocurrencies,” as well as environmental concerns related to its data mining. In another potential regulatory blow, the US Treasury said Thursday it wants every crypto transfer larger than $10,000 to be reported to the IRS.

Following bitcoin’s “latest leg down … investor enthusiasm must surely have cooled,” SocGen said.

And they’re hardly the first firm to point out a possible shift towards gold. JPMorgan research analysts this week said institutional investors are switching out of bitcoin and returning to gold for the first time in six months amid slumping crypto prices.

Read more: 7 crypto heavyweights told us what’s behind the sudden sell-off that erased over $400 billion from the market in just 24 hours – and whether now is the time to ‘buy the dip’

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Treasury yields will likely climb to a 2-year high in 2021 despite recent stabilization, Bank of America says

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The US bond market has experienced a big selloff during 2021.

The stunning rally in Treasury yields this year has stabilized for now but look for rates to resume their rise, says Bank of America, which foresees the 10-year Treasury marching up to a nearly two-year high of 2.5%. The 10-year yield hasn’t been above 2.1% since July 2019.

A spike in Treasury yields during 2021 has been a major focus for both bond and stock market investors. US debt has sold off massively this year in anticipation of hotter inflation rates that will likely accompany the US economy’s recovery from the COVID-19 pandemic.

Treasury yields rise as bond prices fall, with the march higher in yields implying more expensive borrowing costs for businesses and consumers.

The surge in long-dated yields, notably the 10-year yield’s rise to 14-month highs in mid-March, has largely cooled. The 10-year Treasury yield on Monday was around 1.587%, below the 1.76% level a month ago.

“We think technical factors combined with revised expectations on US growth are mostly responsible for the recent stabilization in US rates,” said Bank of America in a note Monday, saying the stabilization “subsequently justifies” a rally in emerging market and US equities and a selloff in the US dollar.

The 10-year yield, which is tied to a range of lending programs, during the first quarter scaled up quickly from about 1% at the start of 2021. Safe-haven bonds sold off as the US government rolled out more coronavirus vaccinations to millions of Americans and after lawmakers in March approved a $1.9 trillion fiscal stimulus program.

But now, “it should not be a surprise to anyone that the US economy will keep recovering at a fast pace. We started the year expecting 4.5% growth for 2021 and now we expect 7% and 5.5% for 2021 and 2022, respectively. The inability of US rates to selloff on the back of a strong March payroll number was the tipping point to stabilize the US rates market, the signal that most of the good news were priced in,” said Claudio Irigoyen, head of Latin America economics, equities, fixed income & FX strategy at Bank of America, in the note.

The US economy added 916,000 jobs in March, blowing past expectations of 660,000 jobs.

Irigoyen noted that there was a climb last week in yields in tandem with a rally in so-called risk assets. Last week, investors received a fresh round of strong US economic data including a nearly 10% jump in March retail sales and new unemployment filings hitting at a pandemic-era low.

“[Global] investors significantly reduced risk exposure on the back of the selloff in rates in 1Q21. Positioning clean up. Since asset managers didn’t observe redemptions, cash levels were abnormally high, in particular for EM dedicated investors. Investors with cash on the sidelines were waiting for US rates to stabilize to redeploy capital into risky assets,” he said, adding that “price action was dominated by short-term flow pressure.”

Investors, meanwhile, are still keeping tabs on communication from the Federal Reserve. The central bank has signaled that it plans to keep its benchmark interest rates near zero until at least 2024 but market participants have been questioning whether the Fed can stand still in the face of hotter inflation, which it aims to do to accommodate the economic recovery.

“Despite the recent stabilization in US rates, we keep our forecast of 2.15% and 1.5% for 10-year and 5-year Treasuries by year end,” said BofA. US economic growth “can surprise updated expectations to the upside during the summer, combined with positive (i.e. higher-than-expected) inflation surprises,” it said.

“In addition, fiscal policy in itself will continue pressuring on real rates as more infrastructure spending is still more likely than tax hikes, adding more to the already sizable fiscal deficit. Finally, the Fed in itself remains an important source of volatility,” wrote Irigoyen.

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Hedge funds have dumped over $100 billion in Treasurys this year, accelerating the bond market’s vicious sell-off

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In this photo illustration one hundred US dollar banknotes are seen on display.

  • Hedge funds have sold over $100 billion in Treasurys since January, becoming big contributors to the bond-market slide, Bloomberg reported.
  • Investors in the Cayman Islands have been the biggest net sellers of US sovereign debt.
  • The sell-off by hedge funds began before the latest round of US government fiscal stimulus.
  • See more stories on Insider’s business page.

Hedge funds have played an instrumental role in this year’s rout in the US bond market by selling off more than $100 billion in Treasurys, according to a Bloomberg report.

Investors in the Cayman Islands, a major financial center and a known domicile for leveraged accounts, have been the biggest net sellers of US government debt, offloading $62 billion of sovereign bonds in February and dumping $49 billion in January, with Bloomberg citing data from the Treasury Department.

The sell-off began after the early January Senate run-off elections that were won by two Democrats. The victories gave that party a 51-vote majority in the upper house of Congress, including Vice President Kamala Harris, paving the way for a large new round of government fiscal spending. In March, President Joe Biden signed into law a $1.9 trillion stimulus package that passed 51-50 in the Senate.

The rollout of COVID-19 vaccines also contributed to investors deciding to exit bonds. As bonds sold off, rising yields prompted a return of convexity-type hedging flows, Bloomberg reported.

The bond market sell-off this year drove the widely watched 10-year Treasury yield above 1.7% for the first time since early 2020. The yield has since pulled back to around 1.58%.

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Gen Z is going to have a hard time getting rich

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Gen Z is set to make less money on stocks and bonds.

  • Gen Z will earn a third less on stock and bond investments than past generations, Credit Suisse found.
  • They can expect average annualized returns of just 2%, according to the bank’s investment returns yearbook.
  • Another obstacle for Gen Z: they’ve been the most unemployed during the pandemic.
  • See more stories on Insider’s business page.

Gen Z is walking a rocky road to getting rich.

They’re set to earn less than previous generations on stocks and bonds, according to Credit Suisse’s global investment returns yearbook.

In fact, the generation can expect average annual real returns of just 2% on their investment portfolios – a third less than the 5%-plus real returns that millennials, Gen X, and baby boomers have seen. Credit Suisse’s analysis took in average investment returns since 1900 and forecasted them going forward for Gen Z.

The yearbook acknowledges that marked deflation could increase bond returns, The Economist reported, but it said inflation is more of a concern. What the report calls a “low-return world” is yet another another financial obstacle for the generation, who may be on track to repeat millennials’ money problems.

A December Bank of America Research report called “OK Zoomer” found that the pandemic will impact Gen Z’s financial and professional future in the same way that the Great Recession did for millennials.

“Like the financial crisis in 2008 to 2009 for millennials, Covid will challenge and impede Gen Z’s career and earning potential,” the report reads, adding that a significant portion of Gen Z is entering adulthood in the midst of a recession, just as a cohort of millennials did. “Like a decade ago, the economic cost of this recession is likely to hit the youngest and least experienced generation the most.”

Gen Z was hit hardest in the workforce

Gen Z been been impacted the most in the workforce, facing the highest unemployment rates.

They entered a job market crippled by a 14.7% unemployment rate in May – greater than the 10% unemployment rate the Great Recession saw at its 2009 peak. Those ages 20 to 24 had an unemployment rate of nearly 27% when the unemployment peaked last April according to data from the St. Louis Fed, more than any other generation.

Recessions typically hit younger workers hardest in the short-term, but can reap long-term consequences.

“The way a recession can really hurt people just starting out can have lasting effects,” Heidi Shierholz, a senior economist and the director of policy at the Economic Policy Institute, previously told Insider. “There’s a lot of evidence that the first postgrad job you get sets the stage in some important way for later.”

Recession graduates typically see stagnated wages that can last up to 15 years, Stanford research shows. That was the case for the oldest millennials graduating into the Great Recession, who in 2016 saw wealth levels 34% lower than that of previous generations at the same age, per the St. Louis Fed.

A follow-up study showed that by 2019, this cohort had narrowed that wealth deficit down to 11%. Such financial catch-up could be an optimistic sign for Gen Z in terms of regaining any ground lost building wealth during the pandemic.

However, millennials have had a 5%-plus annualized investment return on their side. With a projected 2% annual return for Gen Z, building wealth may be even harder to do.

There’s more to building wealth

Of course, stocks and bonds are just two asset classes. There are other ways Gen Z can build wealth, such as investing in real estate or by becoming successful entrepreneurs. Many Gen Zers have already embarked on an entrepreneurial path as early as their teen years, which could go a long way in wealth creation.

But the pandemic has caused a housing frenzy that led to depleted inventory and inflated housing prices, making it more difficult to buy real estate – and build wealth through it. And while more prospective new businesses were formed in 2020 than ever before, almost a third of existing small businesses were wiped out by the pandemic. Altogether, the pandemic could ultimately cause Gen Z to potentially lose $10 trillion in earnings.

Within the next decade, Gen Z’s income will rise to such a point that they’ll effectively take over the economy, but their wealth could well be far behind previous generations by the time they get there.

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S&P 500 hits record amid higher-than-expected jobless claims and continued Fed support

Traders work on the floor of the New York Stock Exchange (NYSE) on December 07, 2018 in New York City
Traders work on the floor of the New York Stock Exchange .

  • The S&P 500 stretched further in record highs Thursday as the Federal Reserve signaled it will accommodate conditions for economic growth.
  • Technology stocks tracked on the Nasdaq Composite led gainers.
  • Jobless claims rose to 744,000, pointing to persistently high unemployment levels.
  • See more stories on Insider’s business page.

US stocks hung around record highs Thursday, with the S&P 500 hitting a new high after insight from the Federal Reserve indicated that monetary policy makers will maintain their stance in supporting growth in the world’s largest economy as it continues to recover from the COVID-19 pandemic.

The S&P 500 index pushed further into record-high territory after reaching a closing peak in the previous session. Technology stocks marched up but blue-chip stocks tracked on the Dow Jones Industrial Average tilted slightly lower.

Stock futures ahead of the open showed little reaction to the Labor Department’s report that weekly jobless claims rose to 744,000, higher than the 680,000 claims expected by economists surveyed by Bloomberg. The report indicated that unemployment remains at persistently high levels, with the previous week’s reading upwardly revised to 728,000 from 719,000.

Here’s where US indexes stood at 9:30 a.m. on Thursday:

Members of the Fed’s rate-setting board expect “it would likely be some time until substantial further progress” on reaching targets of maximum employment and above-2% inflation, according to the minutes from the Federal Reserve Open Market Committee’s mid-March meeting released Wednesday.

“FOMC members were quite positive on short-term growth prospects, but made quite clear that short-term acceleration only goes so far towards their long-term “full employment” goal, suggesting even if growth remains robust through 2Q 2021, we’ll still be in a waiting pattern for Fed policy,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott, told Insider in emailed comments.

“On balance, there was nothing material in the minutes which changes my view of a reduction in [quantitative easing] beginning in early-2022 followed by a potential first rate hike in late-2022,” said LeBas. “I view a 2022 QE reduction as much more likely than a 2022 rate hike,” he said. “If anything, the first hike will be later and the path of hikes steeper than what the markets have currently priced.”

Around the markets, GameStop shares rose after the video game retailer said it plans to elect Reddit favorite Ryan Cohen as chairman.

Trading app Robinhood reportedly failed to disclose data on certain stock trades for more than a year.

Billionaire tech investor Peter Thiel warned bitcoin might serve as a Chinese financial weapon against the US – and says it threatens the dollar.

Gold rose 0.6% to $1,753.20 per ounce. Long-dated US Treasury yields fell, with the 10-year yield down at 1.647%.

Oil prices were mixed. West Texas Intermediate crude lost 1% to trade at $59.23 per barrel. Brent crude, oil’s international benchmark, dropped 0.6%, to $62.76 per barrel.

Bitcoin rose 2.1% to $57,546.

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